Alan Kelly (Tipperary North, Labour) | Oireachtas source

I move amendment No. 27:

In page 20, before section 16, to insert the following new section:16.—(1) Subject to subsection (2), where a company holds a licence, in the event of a change in control of the company—

(a) the licence stands revoked from the date of the change in control, and
(b) the company shall notify in writing the Authority of the change in control and return the licence to the Authority with the notification, not later than 14 days from the date of change in control of the company.

(2) Where there is a change in control of a company which holds a licence arising from the death of a member of the company subsection (1) does not apply.
(3) A company who fails to comply with subsection (1)(b) commits an offence and is liable on summary conviction to a class A fine.
(4) In this section “change in control”, in relation to a company, means—

(a) a change in the person who controls the company (within the meaning of section 432(2) of the Taxes Consolidation Act 1997), or
(b) the acquisition or disposal in one transaction or a series of transactions of shares in the company amounting in value to half, or more, of those issued by the company.”.

While the transfer of an SPSV licence is prohibited under section 14 of the Bill, this restriction is capable of being circumvented where the licence is held in the name of a company rather than an individual by a transfer of ownership of the company. This issue was raised with me previously. There are 929 SPSV licences out of just under 23,000 vehicle licences held by companies. This amounts to 4%. Provision for the granting of further licences to companies is contained in section 9(7) of the Bill. All applicants for licences are required to meet the suitability requirements set out in section 10. Subsection (2)(e) contains specific measures relating to the suitability of members of companies.

The two key policy principles underlying the prohibition on transfer are that a licence should not have a value, which most Deputies accept, and that a licence should determine a person's suitability to carry out a function, which most Deputies will also accept. However, where a company that holds a taxi licence is sold, there is potential to realise a value relating to a taxi licence - that is not open to an individual - and there is a possibility to enter the taxi business without the suitability checks envisaged in section 10, although it is acknowledged that this would be addressed at the time of licence renewal.

The amendment provides that, in the case of a licence held by a company, upon the change in control in the company, that is, when the person or persons who control the company change or there is a change of half or more of the company shareholding in one or more transactions, the licence stands revoked. The exception is where the change in control is as a result of death. I discussed this issue with a number of the taxi unions and following those discussions, I acceded to their request. The new provision ensures there is parity between all SPSV licence holders with regard to the prohibition on transfer of a licence, whether the licence is held by a company or an individual. This is a very reasonable amendment.